AltEnergy Acquisition p(AEAE) - 2022 Q1 - Quarterly Report

Part I. Financial Information Financial Statements This section presents AltEnergy Acquisition Corp.'s unaudited condensed financial statements, detailing assets, operations, and cash flows, with a net income of $8.26 million driven by warrant fair value adjustments Condensed Balance Sheets As of March 31, 2022, the company reported $235.9 million in total assets, $13.6 million in liabilities, and a $12.3 million stockholders' deficit Condensed Balance Sheet Data (unaudited) | Account | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Assets | | | | Cash | $511,093 | $979,226 | | Investments held in the Trust Account | $234,682,717 | $234,616,116 | | Total Assets | $235,909,464 | $236,424,406 | | Liabilities & Equity | | | | Total Current Liabilities | $156,014 | $346,832 | | Derivative warrant liabilities | $5,405,000 | $13,990,000 | | Deferred underwriting commission | $8,050,000 | $8,050,000 | | Total Liabilities | $13,611,014 | $22,386,832 | | Class A common stock subject to possible redemption | $234,600,000 | $234,600,000 | | Total Stockholders' Deficit | $(12,301,550) | $(20,562,426) | Condensed Statements of Operations For Q1 2022, the company reported an $8.26 million net income, primarily from an $8.59 million non-cash gain on derivative warrant liabilities Statement of Operations Highlights (unaudited) | Account | Three Months Ended March 31, 2022 | Period from Feb 9, 2021 (Inception) to Mar 31, 2021 | | :--- | :--- | :--- | | Total Expenses | $390,725 | $34,548 | | Income earned on investments held in Trust Account | $66,601 | $0 | | Change in fair value of derivative warrant liabilities | $8,585,000 | $0 | | Net income (loss) | $8,260,876 | $(34,548) | | Basic and diluted net income per share of Class A common stock | $0.29 | N/A | Condensed Statements of Cash Flows For Q1 2022, net cash used in operating activities was $456,178, leading to a decrease in the cash balance to $511,093 Cash Flow Summary (unaudited) | Cash Flow Activity | Three Months Ended March 31, 2022 | | :--- | :--- | | Net Cash Used In Operating Activities | $(456,178) | | Net Cash (Used In) Provided By Financing Activities | $(11,955) | | Net change in cash | $(468,133) | | Cash at end of period | $511,093 | Notes to Condensed Financial Statements These notes detail the company's SPAC formation, November 2021 IPO raising $230 million, trust account funding, related party transactions, and warrant accounting - The company is a special purpose acquisition company (SPAC) formed on February 9, 2021, with 18 months from its November 2, 2021 IPO to complete a business combination[21][31] - On November 2, 2021, the company completed its IPO of 23,000,000 units at $10.00 per unit, generating $230 million in gross proceeds[23] - Following the IPO, $234.6 million ($10.20 per Unit) was placed in a trust account for a future Business Combination[26] - Management identified substantial doubt about the company's ability to continue as a going concern due to the 18-month deadline for completing a business combination[36] - Public and Private Placement Warrants are accounted for as derivative liabilities at fair value, resulting in a significant non-cash gain in Q1 2022 recognized in the statement of operations[58][59] Management's Discussion and Analysis of Financial Condition and Results of Operations This section discusses the company's financial condition and results, highlighting a Q1 2022 net income of $8.26 million driven by warrant fair value changes, and ongoing going concern doubts - Since its November 2, 2021 IPO, the company's primary activity has been identifying and evaluating prospective acquisition targets[110] Financial Position as of March 31, 2022 | Metric | Value | | :--- | :--- | | Cash | ~$511,100 | | Working Capital | ~$811,000 | | Investments held in Trust Account | ~$234.7 million | - Net income for Q1 2022 was $8,260,876, primarily driven by an $8,585,000 gain from the change in fair value of derivative warrant liabilities[111] - The company has no off-balance sheet arrangements, with contractual obligations including a $15,000 monthly administrative support fee and a 3.5% deferred underwriting fee payable upon business combination completion[119][120] Quantitative and Qualitative Disclosures About Market Risk As of March 31, 2022, the company reported no material market or interest rate risk, with trust account funds invested in U.S. government securities and no hedging activities - The company was not subject to any market or interest rate risk as of March 31, 2022[128] - The company has not engaged in any hedging activities since inception and does not expect to do so[128] Controls and Procedures Management concluded that disclosure controls were ineffective as of March 31, 2022, due to a material weakness in accounting for complex financial instruments, with remediation efforts underway - An evaluation concluded that disclosure controls and procedures were not effective as of March 31, 2022[130] - A material weakness was identified related to the accounting for complex financial instruments[130] - Remediation steps include an expanded review process for complex securities and plans to enhance access to accounting literature and third-party professionals[131] Part II. Other Information Legal Proceedings The company reports no legal proceedings to disclose - None[134] Risk Factors No material changes to risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2021 - As of this report's date, no material changes to risk factors disclosed in the company's Form 10-K filed on March 15, 2022[134] Unregistered Sales of Equity Securities and Use of Proceeds The company reports no unregistered sales of equity securities or use of proceeds for the period - None[134] Defaults Upon Senior Securities The company reports no defaults upon senior securities - None[134] Mine Safety Disclosures The company reports no mine safety disclosures - None[135] Other Information The company reports no other information - None[135] Exhibits This section lists exhibits filed with the quarterly report, including CEO/CFO certifications and Inline XBRL documents - The report includes required certifications from the Chief Executive Officer and Chief Financial Officer[135] - Inline XBRL documents are furnished as part of the filing[135]